Lionel - The Strategis Group put out a report on the future of wireless broadband. It dealt with the US and not with MMG's areas, but talked about revenue growth of 400% for the next few years. I think it is a good indication for MMG's approach at least. No I didn't buy any at 3 though I knew it was a screaming buy. I have been focusing elsewhere for now. Take a good look at Infowave Software (TSE:IW). Nice run so far but just getting warmed up. Wait a minute...here it is:
US Wireless Broadband To Soar - Strategis Report
By Ian Stokell, Newsbytes
WASHINGTON D.C., U.S.A.,
06 Dec 1999, 4:54 PM CST
newsbytes.com
A new report from telecom research and consulting company The Strategis Group, predicts that wireless broadband revenues will increase at a 418 percent compound annual rate over the next five years, fueled by demand for high speed Internet access and local telephone service.
The report, entitled: "US Wireless Broadband: LMDS, MMDS and Unlicensed Spectrum," estimates that wireless broadband revenues will reach $3.4 billion in 2003.
John Zahurancik, vice president of broadband information of The Strategis Group, said, "By 2003, we forecast that no less than 34 percent of US households and 45 percent of US businesses will be serviceable by broadband wireless networks."
According to the report, "Wireless broadband technologies such as local multipoint distribution service (LMDS) 'present an inexpensive means to market entry' for local telephone service."
Peter Jarich, spokesman for Strategis, told Newsbytes, "We're forecasting revenue in those three spectrums - LMDS, MMDS, and unlicensed spectrum - which means it doesn't include (companies) like WinStar or even AT&T."
Explaining the basic drivers of growth, he said, "One of the basic drivers is the growth of the Internet - businesses and consumers are going to be moving to the Internet more and more, and moving to high speed Internet. High-speed Internet is really the main driver. People are getting tired of dial-up and they want something that can provide them with all the great things the Internet promises. Businesses, as well as consumers, are demanding those high speed connections."
But he added that voice services too will be a major factor. "The other driver for revenue is voice services. (Broadband) is going to have a voice focus as time goes on. The early focus is going to be high-speed Internet because that is where the demand is, and that's where there is a lack of supply."
He continued, "Voice is really where you see service revenues. Because people are willing to pay a premium for voice services. If you lose a packet, or lose e-mail, that's one thing - it can be resent, you may not notice it, or if you're connection is slow you're kind of used to it and it'll get faster, or it may be just a glitch - but you notice problems with voice. So premium voice service will always have a premium paid for it.
"And when those voice services start being produced that's when you are going to see the revenues really ramp up."
Finally, large carriers offering bundled services will be another major revenue source. Said Jarich, "MCI, Worldcom, Sprint, and AT&T....you see these bigger carriers getting into it....and what you're seeing is operators that have a lot of money to build up these systems. They have the brand and marketing potential out there to drive the market."
Consumer demand for bundled services is a key. "Our surveys always show that what customers are looking for is bundles - they want local, long distance, and Internet all from one carrier, and (you can) throw in mobile wireless and paging. And if you can get to the customer and provide that to them, that really the key. But you have to get there before anyone else. Then you can really leverage that connection."
The report says that, in 1997, "less than five vendors had the ability to produce an operating LMDS system, and few had been tested extensively. Today, any number of vendors - including major integrators such as Lucent, Nortel and Cisco - can provide a working system. Capable of voice, data, Internet and video services, these systems can meet any customer's local access needs."
Jarich said the report was based on the activity of the operators that are in those spectrums, including their stated business plans, their deployments to date.
"US Wireless Broadband: LMDS, MMDS and Unlicensed Spectrum" is available for $2,400 in hard copy and $3,600 for CD-ROM formats.
Reported by Newsbytes.com, newsbytes.com |
